MARGAO
Chairman of Goa IDC Reginaldo Lourenco has dashed off a letter to Labour Minister Atanasio Monserrate to take into account the view of Goa’s industry before going ahead with his endeavour to bring about the proposed revision of wage.
He pointed out that the industry and all businesses in Goa like their counterparts in the rest of our country have borne the terrible brunt of Covid-19 pandemic, the steep hike in power tariffs and increase in the cost of raw materials.
He drew attention of the Labour Minister to the fact that when minimum wages were revised at Rs 307 for unskilled workers in 2016, the government for the first time introduced payment of Variable Dearness Allowance (VDA) to take care of increase in Consumer Price Index (CPI) for industrial workers. “As of April 2022, the VDA has increased to Rs 85 per day and, accordingly, minimum wage payable has increased to Rs 392 per day. The government’s statement that there has been no increase in wages for the last six years is totally wrong,” he said.
He pointed out that it is important to note that wages are not the only cost for the businesses. In addition, he said, it has to pay EPF, ESIC, LWF and bonus which works to another Rs 95. Besides, cost of raw material, power, transport etc, has gone up. Irrational increase in wages will force labour intensive units to close down. Further, the government should consider wages existing in areas of neighbouring States to avoid influx of labour from other States and deprive employment to local youth,” he added.
Reginaldo further said many government departments are not paying EPF, ESIC contribution of their workers on contract and, hence, it does not know the actual cost. “Having anti-business measures such as high retrenchment compensation, high minimum wages in the State sends a negative signal to investors to set up factories in Goa. We hope the government will consider all these issues before announcing revision in minimum wages,” he added.
